Crafting The Brand Positioning: Tutored By: Prof. Sunil D’ Anto
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Crafting The Brand Positioning: Tutored By: Prof. Sunil D’ Anto as PDF for free.
More details
- Words: 1,130
- Pages: 50
Crafting the Brand Positioning Tutored by : Prof. Sunil D’ Anto
Learning Agenda • How can a firm choose and communicate an effective positioning in the market? • How are brands differentiated? • What marketing strategies are appropriate at each stage of the product life cycle? • What are the implications of market evolution for marketing strategies?
Value Propositions • Scorpio (Mahindra & Mahindra) A vehicle that provides the luxury and comfort of a car, and the adventure and thrills of an SUV
Value Propositions
• Domino’s A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price
Defining Associations Points-of-Difference (PODs) • Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand
Points-of-Parity (POPs) • Associations that are not necessarily unique to the brand but may be shared with other brands
PODs and POPs
Establishing Category Membership* for defining Competitive Frame of Reference • This “four-in-one entertainment solution” from Konica failed to establish category membership
Consumer Desirability Criteria for PODs
Relevance
Distinctiveness
Believability
Deliverability Criteria for PODs
Feasibility
Communicability
Sustainability
Examples of Negatively Correlated Attributes and Benefits
• Low-price vs. High quality • Taste vs. Low calories • Nutritious vs. Good tasting
• • • •
Powerful vs. Safe Strong vs. Refined Varied vs. Simple Efficacious vs. Mild
DIFFERENTIATION STRATEGIES • Competitive advantage is a company’s ability to out- perform competition in one or more ways • Leverageable advantage is one that a company can use as a springboard to new advantages. A company hopes to continuously inventing new advantages Customers must see any competitive advantage as a customer advantage.
Ref : Determinants of Customer Perceived Value Total customer benefit
Total customer cost
Product benefit
Monetary cost
Services benefit
Time cost
Personnel benefit
Energy cost
Image benefit
Psychological cost
Differentiation Strategies
Product * (& Service)
Personnel *
Channel *
Image *
Product (& Service) Differentiation • • • • • • • • •
Product form Features Performance Conformance Durability Reliability Reparability Style Design
• • • • • •
Ordering ease Delivery Installation Customer training Customer consulting Maintenance
Product Differentiation
Channel Differentiation
Personnel Differentiation: Singapore Airlines
Image Differentiation
Positioning of Café Coffee Day
What is Positioning? Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.
Positioning Strategies: David Aaker & Gary Shansby
How should we position?
By Attributes and Benefits? Benefits By Price or Quality? Quality By Use or Application Application?
By Product Class? Class By Product User User?(group)
By Competitor? Competitor By Cultural Symbols
Samples…
Singapore Girl
Kellogg's Tony the Tiger, Pillsbury Doughboy, Ronald McDonald, Duracell Bunny etc.
Claims of Product Life Cycles • Products have a limited life • Product sales pass through distinct stages each with different challenges and opportunities • Profits rise and fall at different stages • Products require different strategies in each life cycle stage
Product Life Cycle
Common Product Life-Cycle Patterns
Style, Fashion, and Fad Life Cycles
Product Life-Cycle Strategies
PLC Stages • • • • •
Product development Introduction Growth Maturity Decline
• Begins when the company develops a new-product idea • Sales are zero • Investment costs are high • Profits are negative
Product Life-Cycle Strategies
PLC Stages • • • • •
Product development Introduction Growth Maturity Decline
• Low sales • High cost per customer acquired • Negative profits • Innovators are targeted • Little competition
Marketing Strategies: Introduction Stage • • • •
Product – Offer a basic product Price – Use cost-plus basis to set Distribution – Build selective distribution Advertising – Build awareness among early adopters and dealers/resellers • Sales Promotion – Heavy expenditures to create trial
The Pioneer Advantage
Long-Range Product Market Expansion Strategy
Product Life-Cycle Strategies
PLC Stages • • • • •
Product development Introduction Growth Maturity Decline
• Rapidly rising sales • Average cost per customer • Rising profits • Early adopters are targeted • Growing competition
Marketing Strategies: Growth Stage • Product – Offer product extensions, service, warranty • Price – Penetration pricing • Distribution – Build intensive distribution • Advertising – Build awareness and interest in the mass market • Sales Promotion – Reduce expenditures to take advantage of consumer demand
Strategies for Sustaining Rapid Market Growth • Improve product quality, add new features, and improve styling • Add new models and flanker products • Enter new market segments • Increase distribution coverage • Shift from product-awareness advertising to product-preference advertising • Lower prices to attract the next layer of pricesensitive buyers
Product Life-Cycle Strategies
PLC Stages • • • • •
Product development Introduction Growth Maturity Decline
• • • •
Sales peak Low cost per customer High profits Middle majority are targeted • Competition begins to decline
Marketing Strategies: Maturity Stage
• • • • •
Product – Diversify brand and models Price – Set to match or beat competition Distribution – Build more intensive distribution Advertising – Stress brand differences and benefits Sales Promotion – Increase to encourage brand switching
Stages in the Maturity Stage Growth
Stable
Decaying maturity
Marketing Product Modifications • Quality improvements • Feature improvements • Style improvements
Marketing Program Modifications Prices Distribution
Advertising Sales promotion Services
Ways to Increase Sales Volume • • • •
Convert nonusers Enter new market segments Attract competitors’ customers Have consumers use the product on more occasions • Have consumers use more of the product on each occasion • Have consumers use the product in new ways
Product Life-Cycle Strategies
PLC Stages • • • • •
Product development Introduction Growth Maturity Decline
• • • • •
Declining sales Low cost per customer Declining profits Laggards are targeted Declining competition
A Product in Decline
Marketing Strategies: Decline Stage • Product – Phase out weak items • Price – Cut price • Distribution – Use selective distribution: phase out unprofitable outlets • Advertising – Reduce to level needed to retain hard-core loyalists • Sales Promotion – Reduce to minimal level
Market Evolution Stages
Emergence
Growth
Maturity
Decline
Emerging Markets Latent Single-niche Multiple-niche
Mass-market
Maturity Strategies
Marketing Debate Do brands have finite lives? Take a position: 1. Brands cannot be expected to last forever. or
2. There is no reason for a brand to ever become obsolete.
Marketing Discussion
What strategies do firms use to try to position themselves on the basis of pairs of attributes and benefits?
The Hindu Tamil edition launch The Hindu in Tamil now Tamil Nadu-based media publication Kasturi & Sons has launched its first regional newspaper yesterday (September 16) after 135 years, with an aim to make its presence felt in the Rs 1,500 crore Tamil newspaper market (including ad spends and circulations). http://www.afaqs.com/news/st ory/38710_The-Hindu-in-Tamilnow
Learning Agenda • How can a firm choose and communicate an effective positioning in the market? • How are brands differentiated? • What marketing strategies are appropriate at each stage of the product life cycle? • What are the implications of market evolution for marketing strategies?
Value Propositions • Scorpio (Mahindra & Mahindra) A vehicle that provides the luxury and comfort of a car, and the adventure and thrills of an SUV
Value Propositions
• Domino’s A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price
Defining Associations Points-of-Difference (PODs) • Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand
Points-of-Parity (POPs) • Associations that are not necessarily unique to the brand but may be shared with other brands
PODs and POPs
Establishing Category Membership* for defining Competitive Frame of Reference • This “four-in-one entertainment solution” from Konica failed to establish category membership
Consumer Desirability Criteria for PODs
Relevance
Distinctiveness
Believability
Deliverability Criteria for PODs
Feasibility
Communicability
Sustainability
Examples of Negatively Correlated Attributes and Benefits
• Low-price vs. High quality • Taste vs. Low calories • Nutritious vs. Good tasting
• • • •
Powerful vs. Safe Strong vs. Refined Varied vs. Simple Efficacious vs. Mild
DIFFERENTIATION STRATEGIES • Competitive advantage is a company’s ability to out- perform competition in one or more ways • Leverageable advantage is one that a company can use as a springboard to new advantages. A company hopes to continuously inventing new advantages Customers must see any competitive advantage as a customer advantage.
Ref : Determinants of Customer Perceived Value Total customer benefit
Total customer cost
Product benefit
Monetary cost
Services benefit
Time cost
Personnel benefit
Energy cost
Image benefit
Psychological cost
Differentiation Strategies
Product * (& Service)
Personnel *
Channel *
Image *
Product (& Service) Differentiation • • • • • • • • •
Product form Features Performance Conformance Durability Reliability Reparability Style Design
• • • • • •
Ordering ease Delivery Installation Customer training Customer consulting Maintenance
Product Differentiation
Channel Differentiation
Personnel Differentiation: Singapore Airlines
Image Differentiation
Positioning of Café Coffee Day
What is Positioning? Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.
Positioning Strategies: David Aaker & Gary Shansby
How should we position?
By Attributes and Benefits? Benefits By Price or Quality? Quality By Use or Application Application?
By Product Class? Class By Product User User?(group)
By Competitor? Competitor By Cultural Symbols
Samples…
Singapore Girl
Kellogg's Tony the Tiger, Pillsbury Doughboy, Ronald McDonald, Duracell Bunny etc.
Claims of Product Life Cycles • Products have a limited life • Product sales pass through distinct stages each with different challenges and opportunities • Profits rise and fall at different stages • Products require different strategies in each life cycle stage
Product Life Cycle
Common Product Life-Cycle Patterns
Style, Fashion, and Fad Life Cycles
Product Life-Cycle Strategies
PLC Stages • • • • •
Product development Introduction Growth Maturity Decline
• Begins when the company develops a new-product idea • Sales are zero • Investment costs are high • Profits are negative
Product Life-Cycle Strategies
PLC Stages • • • • •
Product development Introduction Growth Maturity Decline
• Low sales • High cost per customer acquired • Negative profits • Innovators are targeted • Little competition
Marketing Strategies: Introduction Stage • • • •
Product – Offer a basic product Price – Use cost-plus basis to set Distribution – Build selective distribution Advertising – Build awareness among early adopters and dealers/resellers • Sales Promotion – Heavy expenditures to create trial
The Pioneer Advantage
Long-Range Product Market Expansion Strategy
Product Life-Cycle Strategies
PLC Stages • • • • •
Product development Introduction Growth Maturity Decline
• Rapidly rising sales • Average cost per customer • Rising profits • Early adopters are targeted • Growing competition
Marketing Strategies: Growth Stage • Product – Offer product extensions, service, warranty • Price – Penetration pricing • Distribution – Build intensive distribution • Advertising – Build awareness and interest in the mass market • Sales Promotion – Reduce expenditures to take advantage of consumer demand
Strategies for Sustaining Rapid Market Growth • Improve product quality, add new features, and improve styling • Add new models and flanker products • Enter new market segments • Increase distribution coverage • Shift from product-awareness advertising to product-preference advertising • Lower prices to attract the next layer of pricesensitive buyers
Product Life-Cycle Strategies
PLC Stages • • • • •
Product development Introduction Growth Maturity Decline
• • • •
Sales peak Low cost per customer High profits Middle majority are targeted • Competition begins to decline
Marketing Strategies: Maturity Stage
• • • • •
Product – Diversify brand and models Price – Set to match or beat competition Distribution – Build more intensive distribution Advertising – Stress brand differences and benefits Sales Promotion – Increase to encourage brand switching
Stages in the Maturity Stage Growth
Stable
Decaying maturity
Marketing Product Modifications • Quality improvements • Feature improvements • Style improvements
Marketing Program Modifications Prices Distribution
Advertising Sales promotion Services
Ways to Increase Sales Volume • • • •
Convert nonusers Enter new market segments Attract competitors’ customers Have consumers use the product on more occasions • Have consumers use more of the product on each occasion • Have consumers use the product in new ways
Product Life-Cycle Strategies
PLC Stages • • • • •
Product development Introduction Growth Maturity Decline
• • • • •
Declining sales Low cost per customer Declining profits Laggards are targeted Declining competition
A Product in Decline
Marketing Strategies: Decline Stage • Product – Phase out weak items • Price – Cut price • Distribution – Use selective distribution: phase out unprofitable outlets • Advertising – Reduce to level needed to retain hard-core loyalists • Sales Promotion – Reduce to minimal level
Market Evolution Stages
Emergence
Growth
Maturity
Decline
Emerging Markets Latent Single-niche Multiple-niche
Mass-market
Maturity Strategies
Marketing Debate Do brands have finite lives? Take a position: 1. Brands cannot be expected to last forever. or
2. There is no reason for a brand to ever become obsolete.
Marketing Discussion
What strategies do firms use to try to position themselves on the basis of pairs of attributes and benefits?
The Hindu Tamil edition launch The Hindu in Tamil now Tamil Nadu-based media publication Kasturi & Sons has launched its first regional newspaper yesterday (September 16) after 135 years, with an aim to make its presence felt in the Rs 1,500 crore Tamil newspaper market (including ad spends and circulations). http://www.afaqs.com/news/st ory/38710_The-Hindu-in-Tamilnow
Related Documents
Brand Positioning
May 2020 18
Brand Positioning
May 2020 12
Brand Positioning
July 2020 19
Brand Positioning Irex-fixed
November 2019 21
Sunil
November 2019 16
Brand Positioning Process
July 2020 9More Documents from ""
